Washington Metropolitan Area Transit Authority (METRO) has filed a lawsuit against its insurer, Lexington Insurance Co. of Boston, claiming that the insurer failed to indemnify the Authority for the revenue losses in the train system’s ridership following the 2009 crash that killed eight passengers. Metro is seeking to recover some $13 million from Lexington Insurance. The Complaint was filed in U.S. District Court for the Eastern District of Virginia.
Metro claims it has suffered “falling ridership and consequential loss of revenue” because of the June 2009 crash that killed a train operator and eight passengers and injured many more. Metro estimates some 6 million rides were lost following the crash, with fares ranging from $1.95 to $5. The train system is still not restored to normal operations as a result of the accident. Metro had paid $1.86 million in premiums for up to $50 million of coverage per incident, including losses resulting from partial, complete or potential suspension of business.
Lexington says it has paid out $1.21 million in claims thus far related to the crash. Lexington Insurance is owned by its parent company, AIG-owned insurer Chartis, and is a U.S.-based surplus lines insurer. It operates through several divisions: property, casualty, programs, healthcare, personal lines; and specializes in a number of industry practices: real estate, higher education, transportation, and public entity.
Source: Insurance Journal
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.